John Kotter's approach to corporate urgency during economic crisis

Kotter, John. (October 28, 2008). An Astonishing Lack of Urgency (and What You Can

Do About it). Retrieved October 29, 2008 from, http://conversationstarter.hbsp.com/2008/10/an_astonishing_lack_of_urgency.htm

Most businesses would agree that the current economic climate is not conducive to business development. Instead, the climate is most conducive to layoffs and downsizing. While these events are bound to happen during economic hardships, businesses can deal with them in a manner that is positive for their business. In his article, "An Astonishing Lack of Urgency (and What You Can Do About it)," author John Kotter discusses the current "economic peril," and how companies are dealing with the situation.

II. Summary

In order to do this, Kotter takes the reader on an in-depth look of a "very typical company" undergoing economic hardship. His discussion of two observations in struggling companies lead to helpful tips for the reader on surviving an economic crisis such as this. He first diagnoses this hardship through the symptom of "finger pointing." Kotter recounts his story of discussing economic matters with company officials on all different planes. While all of the company members that he interviewed agreed that the company was suffering from economic hardship, none were willing to admit to a part that they or their department had played in the hardship nor work to solve it. Because most of the employees saw the company's struggle as someone else's problem, they lacked the ability to deal efficiently with that struggle. Instead, managers implicated marketers, marketers implicated managers, and employees implicated the government. Kotter argues that employees with this attitude can accomplish little, and should, instead, be working to see what they can do to solve the problem. The second trend that Kotter notices in observing the tried company is a sense of frantic urgency. Employees and officers were running down halls to meetings in a frantic state, working late and trying their hand at new solutions. While Kotter agrees that doing something to better the situation is best for these companies, he denounces this sort of behavior. Instead of being productive, Kotter argues that this sense of urgency simply acts upon the fear, anger, and frustration that most employees harbor because of the economic failure. Based on these two observations, Kotter recommends that, in times of hardship, employees of challenged companies should take a moment and step back to see "what is really going on." They need to do research, look at data, and then confer their finds to others. Finally, Kotter suggests that workers should implement a "true urgency," based on the real problems and probable solutions.

Analysis

For the leader or manager of a company, Kotter's words are a beacon in the dark, a snippet of sense making in a world of ridiculousness. While the economic crises of late have certainly and understandably frustrated a variety of decision-makers, they need not turn leaders and managers into fools. Instead, Kotter's insistence that employees stop blaming other firms or departments and start looking to themselves for a solution, in addition to analyzing data and implementing urgent recovery programs based on that data, is a breath of fresh, sensible air. Written to managers and top executives, as well as company employees, Kotter's argument may seem a bit simplistic, and even a little condescending, but its message is timely and correct for his audience. Most importantly, it encourages managers and other business leaders to make sound decisions. Although the article is definitely applicable, Kotter could have improved his claim by developing further the problems that he saw in the challenged company. While his two observations are undoubtedly primary, both stemming from false urgency, Kotter could have taken his logical and well-thought-out solution to other problems in the economy-obsessed world. Furthermore, an expansion to include the individual psyches of managers and the economy's affect on them in regards to false urgency would have been a welcome expansion. Thus, Kotter's article is well thought out, logical, and easily applicable to today's problems. If it is anywhere deficient, it is only that the reader wants more of Kotter's solution.

Article 2

Sutton, Bob. (July 24, 2007). Layoffs: More Evidence on Cost Implementation Practices.

Retrieved October 29, 2008, at http://discussionleader.hbsp.com/sutton/2007/07/layoffs_more_evidence_on_costs_1.html

Introduction

For any manager or human resources personnel, letting employees go can be one of the most difficult aspects of the job. When these firing are layoffs, when the person in question really didn't do anything wrong, they are even worse. While laying off employees is never easy, it can be much simpler if it is done with tact and professionalism.

Summary

In his article, "Layoffs: More Evidence on Cost Implementation Practices," Bob Sutton details some of the ways that managers and human resource personnel can participate in the layoff while minimizing the damage to both former employee and the business. The Harvard Business Review Online article is a continuation of a series of articles on the topic written by Sutton. In this particular article, Sutton lays out four ways in which managers might treat layoffs in order to minimize their pain. The first step that Sutton urges managers to take when it comes to layoffs is prediction. Sutton argues that explaining the process to employees before they are actually laid off can actually make the process easier for some. In this scenario, employees are addressed as a group, a group with common goals and fears. The manager of human resources personnel should address not just the individual employee, but also small groups and the whole company. Sutton suggests that this is important because it makes employees understand what may happen to them in the future; it gives them time to prepare; and it helps them in taking steps to adapt to a life without their job. In the same vein, Sutton's second step is understanding. He suggests that leaders explain to employees why the change is important and necessary for the company. Thirdly, Sutton urges managers to give a degree of control to employees in terms of layoffs. Of course, few employees would choose to be laid off, but Sutton argues that allowing employees control over "when it happens" can help ease the employees into their new roles. Finally, Sutton lists compassion as a necessary characteristic for the laying off.

Analysis

While Sutton's argument, that layoffs can be approached in a much more humane way that softens the blow, it does not necessarily give managers new information that can help them better deal with the situation. According to Michael Moore's book, Downsize This, rules like Sutton's have been in company's personnel manuals since the 90s. In addition, Moore suggests that these guidelines don't do much to soften the blow of layoffs. While layoffs are always necessary for growth and in times of economic trouble, companies should understand that it is common sense for managers to treat the laid off employee with compassion and respect, being honest with all employees about layoffs. Instead of spending their time thinking about better ways to tell workers they are laid off, however, perhaps managers should be considering methods of reducing layoffs.

Article 3

Gottschaig, Oliver F. And Pe'er, Aviad a. (November 2008). Do Politics Shape Buyout

Performance? Retrieved October 29, 2008, at http://harvardbusinessonline.hbsp.harvard.edu/hbsp/hbr/articles/article.jsp?ml_subscriber=true&ml_action=get-article&ml_issueid=BR0811&articleID=F0811A&PageNumber=1

I. Introduction

One of the important tasks of managers and other leaders in the business world is determining when and where to buyout another business. Many factors lead to the business's decision to acquire a new venture, but government politics is not necessarily one of those factors that managers usually consider. But in their article, "Do Politics Shape Buyout Performance, in the Harvard Business Review, Gottschaig and Pe'er (2008) suggest that red or blue actually affects a buyout's performance.

II. Summary

The authors argue that their "research shows that the performance of buyouts in 'red' Republican states is likely to be above average, while buyout performance in 'blue' Democratic states is likely to fall below the mean." Even after controlling for other factors, the researcher's findings held constant. Thus, the authors suggest that values in 'red' states are more consistent with "buyout value-creation strategies" than are Democratic states (Gottschaig and Pe'er 2008). Some of these strategies include outsourcing and shutting down less-than-productive operations. The authors continue in their claim by reiterating the terms of the study, which found that the average return for buyouts in Republicans states was significantly above the mean, while the return in the Democratic states was significantly below the mean. The authors continue to argue that the implications of this study are monumental. "Economic Consequences" for those who invest in Democratic states are significantly negatively higher than for those who invest in Republican states, according to the author's hypothetical model Gottschaig and Pe'er 2008). Furthermore, the authors suggest that companies in Republican states are more likely to be bought out than companies in Democratic states. Finally, Gottschaig and Pe'er (2008) allow "a few exceptions to the fuel," citing states that are steeped in industrial history. In order to best determine whether or not a buyout will be successful due to politics, the authors recommend studying local values and political opinions.

III. Analysis

Gottschaig and Pe'er's (2008) study was both innovative and remarkable. Written for business leaders, managers, and officers, who are often in charge of buyouts, this article gives helpful, unique advice for participating in a buyout. Although many American citizens are aware of the reputation of Republicans and Democrats when it comes to big business, they are not usually convinced that these stereotypes have a real impact on the business world. This article proves them wrong, and is strikingly relevant in this era of what some may call re-alignment. In addition to being innovative, the authors' article is also rather helpful for managers and those in charge of buyouts. By giving these officials proper information regarding which states will encourage a successful buyout vs. which states will probably lead to a mediocre buyout, the authors have given concrete, data-backed advice that can improve the investments of many companies. Thus, because of its innovations and relevance, the author's article is an excellent example of important research.

Article 4

Barsh, Joanna, Cranston, Susie, and Craske, Rebecca a. (September 2008). Centered

Leadership: How Talented Women Thrive. Retrieved October 30, 2008, at http://www.mckinseyquarterly.com/Centered_leadership_How_talented_women_thrive_2193

Introduction

In the business world, both men and women spend a great deal of time learning to become better leaders. In fact, the pursuit of leadership has become a successful business in its own right, producing tapes, speakers, and books meant to instruct would-be leaders on the topic. Although the last few decades have seen quite a few women in both private and government leadership, few have risen to the very top rungs of the leadership ladder. When studies have consistently shown that women are just as capable thinkers and achievers as men, why have they been so under-represented in the world of corporate leadership? In their article, "Centered leadership: How talented women thrive," Joanna Barsh, Susie Cranston, and Rebecca a. Craske (2008) attempt to answer that question.

III. Analysis

Barsh et al.'s (2008) article gives a condensed and effective leadership lesson to both men and women. While many books, tapes, and videos maintain that they know how to best shape leaders in several lessons, Barsh et al.'s (2008) study triumphs over these lessons for hire by offering real, empirical, and applicable advice. In contrast to many of the leadership modules that exist from a variety of sources today, Bash et al. do not ask readers to believe them because they are charismatic individuals who have attained effective leadership in their lives. Instead, they objectively interview close to 100 leaders to determine the practices that worked best for them. From these practices, the authors were able to hone down the relevant information into five dimensions. This is another advantage over other leadership modules, which are often so long and involved that several days and several notepads with pencils are necessary in order to glean anything from the lesson. Finally, Barsh et al.'s (2008) advice is rather easy to implement. Most of the characteristics of effective leaders that the authors point out are characteristics that businessmen or women already have; the authors simply ask the women to refine these skills. Thus, Barsh et al.'s (2008) article is excellent in that it gives real, empirical advice to women in condensed form, advice that can be easily put into practice.

Article 5

Boccaletti, Giulio, Loffler, Markus, and Oppenheim, Jeremy M. (October 2008). How it can cut carbon emissions. Retrieved October 30, 2008, at http://www.mckinseyquarterly.com/How_IT_can_cut_carbon_emissions_2221

Introduction

The topic of environmental problems and global warming has permeated almost ever discipline as of late. Because many scientists have concluded that global warming is a problem that will drastically affect the future of the world, in addition to being a problem that humans can fix. For this reason, businesses are beginning to develop ways to cut their carbon emissions. Boccaletti, Loffler, and Oppenheim's (2008) article, "How it can cut carbon emissions" argues that reducing your business's carbon footprint is not necessarily as difficult as it may seem.

Summary

Boccaletti et al. (2008) begin their argument by listing data that suggests many tools of business are the culprits of global warming. For instance, the authors argue that laptops, PCs, data centers, computer networks, mobile phones, etc. could become "among the biggest greenhouse gas emitters by 2020" (Bocaletti et al. 2008). With this information that implicates business tools among the largest contributors to global warming, however, coexists information that suggests these types of technology can be used to reduce the amount of emissions. In fact, the authors list that these types of technology can help "eliminate 7.8 metric gigatons of greenhouse gas emissions annually by 2020" (Boccaletti et al. 2008). The authors then recount the scientific methodology through which they calculated the carbon footprint left by communication technology used by most businesses. In addition to their current contribution to the problem of emissions and global warming, the authors note that these technologies will continue to add to the problem through methods to make them more efficient, in addition to greater adoptions of these technologies across the globe. The authors also suggest that an increase in data centers across the globe will significantly increase emissions. Although this may be technology's "dark side," however, good news is also available. In fact, they conclude that these technologies can abate more emissions than they produce in five specific sectors -- "buildings, power, transport, and manufacturing. By taking the place of more emissions producing practices, such as driving to work vs. telecommuting, and increasing efficiency of production, the authors conclude that the future of business technology is actually quite impressive.

Analysis

While Boccaletti et al.'s (2008) article is certainly unique and informative, it lacks specific recommendation for it departments. Although it is important for businesses, managers, and other leaders to assess their technologies in light of the current economic crises and global warming, this article gives little practical advice to it departments who strive to do so, in addition to striving to reduce their emissions. Despite a paragraph at the conclusion of their article that gives general information to it buyers about growing and changing the way they view technology, the authors do not have a recommendation for businesses and it departments in this area. It departments and businesses are in need of this information, especially in light of the convincing evidence that the article has given in regards to the ability of communication technology to reduce emissions. Thus, while this article was certainly informative, bringing important evidence to an important discussion, it lacked real significance because of its lack of recommendation. If Boccaletti et al. (2008) could resubmit their findings with a short, succinct list of what businesses could do to help solve the problem, the article would be a pinnacle of business-environment integration.